Josh Hoskin Smart Money jhoskin@goldridge.co.nz

Finally, size no longer matters when you are investing for income and you don't have to accept poor returns from the bank any longer just because your portfolio is a modest size.

With share markets moving all over the place at the moment for the more risk averse, this could be a good option.

I don't normally talk about individual products, but one of the fund managers I use has developed a great product that can pay a quarterly income with an attractive earning rate. This is designed to meet the demand for an investment that produces a regular income and pays a decent rate. It is ideal for sums from $10,000 to $150,000. I am impressed with the structure and performance of this fund. It is well diversified across many different term deposits and bank debt and some corporate debt. The average credit rating is AA- which is very close to the USA's current credit rating.

You don't have to worry about managing maturity dates and if you need it in normal circumstances your money is available within about a week without penalty. The management fee is also very reasonable at 0.3 per cent pa. Among other things, this reduces interest rate risk as maturities are not concentrated in one period when interest rates might be low.

Returns come from distributable income and changes in the funds unit price. The fund is priced daily and the value of the assets is 'marked to market” so values can move up and down. This is just one of the many income investment options that are available, so come and discuss your thoughts with us.

Of course, I would never recommend you invest all your funds in one managed product, however, at least with this one you know that within the product there is a lot of diversification – unlike investing with just one bank – and could be an excellent option for those in retirement or looking for a simple income portfolio solution.

The article is based on personal opinion and may not be representative of the views of Goldridge Ltd. Josh Hoskin is an authorised financial adviser with Goldridge Wealth Management. A copy of his Disclosure Statement is available free on request. This article is not personalised advice under the Financial Advisers Act 2008. Readers should not act on any suggestions in this column without taking professional advice that takes into account their current circumstances and appetite for risk.